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Vehicle leasing is the leasing (or the use) of a motor vehicle for a fixed period of time at an agreed amount of money for the lease. It is commonly offered by dealers as an alternative to vehicle purchase but is widely used by businesses as a method of acquiring (or having the use of) vehicles for business, without the usually needed cash outlay.
Your lease term and cost vary depending on your leasing company, the interest rate, the down payment, and the car's capitalized cost. Here are a few tips to get the best lease rates: Compare the ...
Usually, car leases allow the lessee to drive the car for a certain number of miles for a certain number of years. The lessee pays a fixed monthly payment for the privilege of driving the vehicle, and when the lease ends, the lessee returns the vehicle to the lessor. The lessee pays only for the value of the vehicle for the term of the lease.
Another freedom: You can drive this car as far as you want, whereas leases have mileage caps and charge for overages. Leasing , on the other hand, can get you into a nicer car for a similar ...
This option, but not the obligation, to acquire the car after a period equivalent to a contract hire is therefore packaged as either an option (in law) to purchase the car (a call option) at a 'set' price, or a right to sell the car (a 'put' option) at a set price after ownership is fully achieved from the final ‘balloon’ payment.
For those seeking to lease a car, a good credit rating will help lower the money factor. To understand the money factor in terms of an annual percentage rate, or APR, multiply it by 2,400.
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